Producer Prices Remain Tame
Producer prices for final demand (blue) rose 0.1% in July, while upstream raw commodity prices (red) rose 0.7%, close to their highest monthly increases in the past two years:
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In the larger pre-pandemic scheme of things, the one month rise in commodity prices is not a matter of concern at this point.
On a YoY basis, final demand producer prices are up 2.2%, while raw commodity prices are up 1.5%:
(Click on image to enlarge)
Like all other prices except for imputed shelter costs, this is well within the Fed’s target range. We’ll see how this pans out for consumer prices tomorrow.
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Disclaimer: This blog contains opinions and observations. It is not professional advice in any way, shape or form and should not be construed that way. In other words, buyer beware.
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